Southern Company (SO)
Total asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 25,253,000 | 26,255,000 | 27,653,000 | 29,111,000 | 29,279,000 | 27,999,000 | 25,859,000 | 23,851,000 | 23,113,000 | 22,463,000 | 21,845,000 | 21,267,000 | 20,375,000 | 20,172,000 | 20,547,000 | 21,025,000 | 21,419,000 | 21,842,000 | 22,006,000 | 22,535,000 |
| Total assets | US$ in thousands | 139,331,000 | 138,321,000 | 137,116,000 | 134,756,000 | 134,891,000 | 134,005,000 | 130,769,000 | 128,639,000 | 127,534,000 | 127,861,000 | 125,907,000 | 125,393,000 | 122,935,000 | 123,158,000 | 119,731,000 | 118,852,000 | 118,700,000 | 117,591,000 | 114,867,000 | 114,096,000 |
| Total asset turnover | 0.18 | 0.19 | 0.20 | 0.22 | 0.22 | 0.21 | 0.20 | 0.19 | 0.18 | 0.18 | 0.17 | 0.17 | 0.17 | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.20 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $25,253,000K ÷ $139,331,000K
= 0.18
The total asset turnover ratio for Southern Company has shown some fluctuations over the past eight quarters. The ratio ranged from 0.18 to 0.22 during this period, indicating that, on average, the company generates between $0.18 to $0.22 in revenue for every dollar of total assets it holds.
The trend shows a slight increase in total asset turnover from Q4 2022 to Q1 2023 before stabilizing around 0.20 for the subsequent quarters. This suggests that the company has been able to generate more revenue relative to its total assets in the earlier quarters of 2023 compared to the end of 2022.
A total asset turnover ratio of less than 1 typically indicates that the company is not efficiently utilizing its assets to generate sales. Southern Company's ratios fall within this range, implying that there may be room for improvement in how effectively the company is utilizing its assets to generate revenue.
Overall, monitoring the total asset turnover ratio can provide insights into Southern Company's efficiency in generating revenue from its total asset base and can be useful for assessing the company's operational performance over time.
Peer comparison
Dec 31, 2023